Breaking Down Paychex: 9 Analysts Share Their Views
Throughout the last three months, 9 analysts have evaluated Paychex (NASDAQ:PAYX), offering a diverse set of opinions from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 7 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 0 | 0 | 5 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 1 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $151.0, a high estimate of $165.00, and a low estimate of $140.00. A 0.17% drop is evident in the current average compared to the previous average price target of $151.25.
Breaking Down Analyst Ratings: A Detailed Examination
The perception of Paychex by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Peter Christiansen | Citigroup | Lowers | Neutral | $148.00 | $158.00 |
| Tien-Tsin Huang | JP Morgan | Raises | Underweight | $153.00 | $148.00 |
| Daniel Jester | BMO Capital | Announces | Market Perform | $160.00 | - |
| James Faucette | Morgan Stanley | Lowers | Equal-Weight | $148.00 | $150.00 |
| David Grossman | Stifel | Lowers | Hold | $152.00 | $156.00 |
| Kevin Mcveigh | UBS | Lowers | Neutral | $145.00 | $155.00 |
| Samad Samana | Jefferies | Lowers | Hold | $140.00 | $155.00 |
| Tien-Tsin Huang | JP Morgan | Raises | Underweight | $148.00 | $140.00 |
| Ashish Sabadra | RBC Capital | Raises | Sector Perform | $165.00 | $148.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Paychex. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Paychex compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Paychex's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
To gain a panoramic view of Paychex's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Paychex analyst ratings.
Get to Know Paychex Better
Paychex is a technology company providing human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. It has a diverse set of product offerings addressing client needs. Aside from its traditional cloud-based payroll and HCM software offering, which accounts for close to half of total revenue, the company provides outsourcing options. Paychex's administrative service organization and professional employer organization accounts generate over 40% of sales. The balance of revenue is generated through retirement services, insurance solutions, and other products. In fiscal 2025, the company had 800,000 clients and almost 2.5 million worksite employees across its ASO and PEO.
Unraveling the Financial Story of Paychex
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Paychex's remarkable performance in 3M is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 10.21%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Paychex's net margin excels beyond industry benchmarks, reaching 20.82%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Paychex's ROE stands out, surpassing industry averages. With an impressive ROE of 7.21%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.14%, the company showcases effective utilization of assets.
Debt Management: Paychex's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.